The distribution models employed by automobile importers such as Toyota and Honda are an important component of the automakers' general business strategies. Toyota's approach is dock-based; vehicles arriving in the U.S. from Japan are kept at the port for cleaning and customization. The dock becomes a satellite factory. This method has increased Toyota's flexibility, since it allows the company to produce high volumes of a particular model and then add accessories to meet regional tastes at the dock. In contrast, Honda's approach is dealer- based. This method gives Honda greater freedom to experiment and introduce new models. Because Honda introduces new products to the market more frequently, it needs to have a fast, efficient plant-to- dealer distribution method. Vehicles are customized at Honda dealerships rather than at the dock.
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